Published on 5/15/2021 in the Prospect News Structured Products Daily.
New Issue: BofA prices $350,000 contingent income callable yield notes on indexes
By Kiku Steinfeld
Chicago, May 17 – BofA Finance LLC priced $350,000 of contingent income issuer callable yield notes due Nov. 1, 2022 linked to the least performing of the S&P 500 index, Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 6% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date for that month.
After three months, the notes are callable at par plus the contingent coupon on any quarterly observation date other than the final one.
The payout at maturity will be par due unless any index finishes below its 70% threshold level, in which case investors will be fully exposed to any losses of the worst performing index.
The notes are guaranteed by Bank of America Corp.
BofA Securities, Inc. is the selling agent.
| Issuer: | BofA Finance LLC
|
| Guarantor: | Bank of America Corp.
|
| Issue: | Contingent income issuer callable yield notes
|
| Underlying indexes: | S&P 500, Nasdaq-100, Russell 2000
|
| Amount: | $350,000
|
| Maturity: | Nov. 1, 2022
|
| Coupon: | 6% annual rate, payable monthly if each index closes at or above coupon barrier on observation date for that month
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold, par plus any coupon due; otherwise 1% loss for each 1% decline of worst performing index
|
| Call option: | After three months, at par on any quarterly observation date other than final one
|
| Initial levels: | 4,186.72 for S&P, 13,960.28 for Nasdaq, 2,301.267 for Russell
|
| Coupon barriers: | 2,930.70 for S&P, 9,772.20 for Nasdaq, 1,610.887 for Russell, 70% of initial levels
|
| Downside thresholds: | 2,930.70 for S&P, 9,772.20 for Nasdaq, 1,610.887 for Russell, 70% of initial levels
|
| Pricing date: | April 27
|
| Settlement date: | April 30
|
| Selling agent: | BofA Securities, Inc.
|
| Fees: | 2%
|
| Cusip: | 09709UHJ0
|
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